Claudia Sheinbaum’s approach to Trump’s tariffs: A balanced strategy

As the 25 percent tariffs on imports from Mexico and Canada were about to take effect under US President Donald Trump, Canadian Prime Minister Justin Trudeau quickly responded with strong remarks and immediate retaliatory tariffs. In contrast, Mexican President Claudia Sheinbaum chose a more measured approach, holding off on direct actions and offering a diplomatic response. She announced that Mexico would implement tariffs on US goods, but these would not take effect until Sunday, allowing time for negotiations with the US.

Trump had previously announced the tariffs, citing concerns about border security and drug trafficking, especially fentanyl. Mexico and Canada had worked with the US to address these issues, with Sheinbaum increasing border security and Trudeau appointing a "fentanyl czar." Despite these efforts, Trump imposed the tariffs in early February, causing significant disruption in global trade, especially as the US is a major trade partner for both countries.

Canada responded swiftly by imposing retaliatory tariffs on US goods, with Trudeau emphasizing that these measures would remain in place until the US tariffs were removed. The US tariffs cover a wide range of goods, and Canada also imposed actions such as removing US liquor from stores in some provinces.

Mexico, on the other hand, took a more reserved stance. Sheinbaum stated that Mexico would protect its interests but emphasized the importance of diplomacy and keeping a "cool head." She also mentioned that if the tariffs continued, Mexico would seek alternative trading partners.

Sheinbaum’s approach is shaped by Mexico’s heavy reliance on trade with the US, with over 75 percent of Mexico’s exports going to the US. The potential economic consequences of a trade disruption are significant. Unlike Canada, Mexico's strategy is focused on maintaining stability while seeking a long-term solution.

While Trudeau has framed the conflict as an existential threat to Canada’s sovereignty, Sheinbaum's relatively calm response reflects Mexico's need for time. The recent exemption for the auto industry from the tariffs benefits Mexico significantly, as cars and auto parts make up a large portion of its exports to the US.

Sheinbaum's approach appears to be gaining support from both the public and investors in Mexico. However, it remains to be seen whether it will lead to a resolution of the trade conflict.